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By Ikechukwu Iroha.
It is rational to assume that minimal trade barriers, developed markets for goods and services, access to credit facilities, political stability and labour market regulations will make investment in a State more lucrative for foreign investors.
Under globalization, capital freely flows around the world and seeks highest return. It looks for a location with well established logistics network infrastructure and processes .
Foreign Direct Investment (FDI) is a key factor in economic integration. It provides avenues for creating stable and long lasting links between economics.
Under a conducive policy environment, It can serve as a vehicle for local enterprise development and may help improve the competitive position of the host and the investor.
In addition to its positive effect in the economy of the State, FDI improves and encourages the transfer of technology and know-how between economics.
Dr Okezie Ikpeazu in a meeting with the British High Commissioner and Permanent Representatives to ECOWAS, Paul Arkwright, and the Commission’s Deputy Head of Political Section South East & South West Nigeria, Andrew Fleming, at the British High Commission in Abuja in December last year, recapitulated his commitment to bringing the much needed development in the state.
Recently, Dr. Ikpeazu made a strong case for Abia State in far away Cairo, where he presented a road map to be achieved in the power sector. Dr. Ikpeazu who travelled with some major players in the private sector, is seeking amongst other things, to bring about regular power supply so as to boost businesses in the SME hub of Nigeria.
The CEO of Geometrics Power Prof. Bath Nnaji, MD Crown Realities Plc Mr Darl Uzu, the promoters of the Enyimba Free Trade Zone project and Dr Pascal Dozie, Chairman of Diamond Bank Plc, were among the heavyweights that joined Dr. Ikpeazu to a one day meeting with the President of African Export-Import Bank (Afreximbank)at their headquarters in Cairo, Egypt. The dividends of the meeting is hopefully going to put Abia on the map as one of the first States to enjoy uninterrupted power supply. The President of Afreximbank, Dr. Okey Oramah assured Dr. Ikpeazu that the development of Industrial Parks and constant power supply are in line with the bank’s strategic investment thrust and policy.
Dr Okezie Ikpeazu is also meeting with various investors to partner formidably with the state government to establish an enabling environment that will allow businesses flourish within the state.
Such meeting between the Governor, British high commissioner, Afreximbank and other private investors, remain one of the long list of recent engagements of the Governor to ensure that Abians enjoy dividends of democracy.
The way to economic comeback, the stronger path to help those out of work today find a paycheck, is to unleash the forces of job creation in the State.
Bringing investors to Abia State will not only bring in more capital for businesses but will improve on ways of production which will target high scale with large market capacity.
Repeatedly, the source of new jobs is not going to be based only on bureaucracies of government house and laws of the Assembly, rather the creativity, ingenuity, and hard work of Abia people.
Abia people are known for their entrepreneurial skills. The Governor Said earlier while promoting Aba-made, that Abia State will take advantage of Nigeria population in terms of larger markets for our products.
As established earlier, basic presumptions underlying the desirability of nurturing SME, are the perceived multiplier effect which Small Scale industries have in the economy and economic growth in the State. By attracting FDI, our small scale businesses will begin to breath a new wave of technologies which definitely will improve both on our quality and quantity.
Unarguably, some leather and garment makers sponsored to Turkey to acquaint themselves with modern technologies by Dr. Ikpeazu, already are making progress going by the quality of products they are producing today in Aba.
Every big economy is private driven. To relieve the govt from the herculean task of paying huge sums as salaries, people must be engaged in wealth creation.
By bridging the gap between domestic savings and investment and bringing the latest technology and management know-how from developed countries, foreign direct investment (FDI) can play an important role in achieving rapid economic growth in Abia State.
Some industries require higher skilled labour, Therefore, multinationals will invest in those areas with a combination of low wages, but high labour productivity and skills.
An investment in textile, leather, Agriculture etc will improve those sectors rapidly while bringing out the basic underlying principle of Self Reliance as a working tool towards diversifying the economy of Abia State. A time whereby Abia will not have to migrate to Abuja before Salaries are paid, is sure going to become a reality.
The new slogan “Abia beyond oil” is in its own an economic drive on a platform of self reliance and resilience of an Igbo man. High crime rate, high rate of goods and services etc are prices we are paying for over dependence on oil which Dr Ikpeazu through his efforts in the State is nipping in the bud.
FDI will increase the level of infrastructure in Abia State. A State with access to the sea and railway , has an advantage in terms of movement of goods. Enyimba hotels which is under reconstruction by an international Organization (Swiss Hotels) is one of such benefit of FDI in the State. Grants, loans are tied to projects that will be self sustaining.
Sometimes, Foreign direct investment is often targeted to selling goods directly to the economy involved in attracting the investment. Therefore, the size of the population and scope for economic growth will be important for attracting investment. A State like Abia, offers scope for new markets.
Foreign direct investment has an element of risk. Countries or States with an uncertain political situation, will be a major disincentive. Also, economic crisis can discourage investment. Abia is experiencing peace and has regained her consciousness in terms of Security, it is therefore not out of place to applaud the timing of the projects and Investments coming into Abia State.
Development and investment thrive in a peaceful environment.
Foreign firms often are attracted to invest in similar areas to existing FDI. The reason is that they can benefit from external economies of scale. In that regard, it therefore means that Abia has become a beehive of investment activities in Nigeria.
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